Are closing costs tax deductible? I recently refinanced and I would like to deduct closing costs for a mortgage refinance but I am not certain this is allowed by the IRS.
You can only deduct closing costs for a mortgage refinance if the costs are considered mortgage interest or real estate taxes. You closing costs are not tax deductible if they are fees for services, like title insurance and appraisals.
You can deduct these items considered mortgage interest:
- Mortgage insurance premiums — for contracts issued from 2015 to 2020 but paid in the tax year
- Points — since they’re considered prepaid interest. You must usually allocate points over the life of the loan.
You can’t deduct your mortgage insurance premiums if your adjusted gross income (AGI) is more than:
- $54,500 if you’re married filing separately
What is e-filing? Learn more about e-filing your taxes and get answers from H&R Block.
Do you earn an income in Arizona? Learn more about Arizona tax brackets and tax rates, and where you stand, in this post from H&R Block.
Filed last year’s taxes after the due date? You might need to use something other than your last year’s AGI amount to e-file.
Looking for more information about your Oklahoma refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.